“Nearly all of the families who benefit most from income sprinkling are headed by male income earners, which undercuts claims that the current loophole is positive for gender equality, and almost half of all benefits flow to the richest 5% of families—those earning more than $216,000 a year. Families headed by professionals, particularly physicians, lawyers, accountants and those in real estate and insurance, are most likely to benefit from the income-sprinkling loophole.

On the other hand, more traditional small businesses, such as family-run farms or restaurants, are 2.5 times less likely than professionals to benefit from income sprinkling. Even among health care businesses—the group most likely to benefit from the current sprinkling loophole —three-quarters of families see little or no tax gain from distributing dividends among family members.”

The vast majority of Canadians who benefit from income sprinkling are well to do. Let’s have a fairer tax system for all of us.